C$200 million investment fund for Africa launched
Actis and Cordiant, the prime Canadian emerging market asset manager, launched the C$200 million Canada Investment Fund for Africa (CIFA), in April.
The fund consists of an anchor commitment of C$100 million from the Canadian Government, with at least the equivalent contribution to be raised from third parties. The amount committed at first closing will be C$50 million made up of C$25 million from the Canadian government and C$25 million from CDC, the UK government's instrument for investing in the private sector in developing economies. The remaining C$75 million from the Canadian government will be committed as matched funding as money is raised from third parties.
Actis and Cordiant were selected to manage the fund jointly following an extensive public tendering process. Actis is the leading private equity investor in Africa, having built up a team with deep financial and operational experience over the 50 years it has been active in the market. Cordiant will leverage its existing expertise as a critical link between institutional investors and private sector emerging markets opportunities to provide access to North American deal flow and
investment capital. The fund will provide risk capital for private investment in companies in Africa to generate economic growth in a commercially viable and sustainable manner, and will run for ten years.
